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Case Title:

Ryanair: Flying High in a Competitive Atmosphere

Publication Year : 2006

Authors: Dileep.R.Warrier, Saravanan I B

Industry: Transportation

Region:US

Case Code: COM0138C

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:

The airline industry in Europe underwent a transformation during the post liberalization era in the 1990s. The leading low cost airline in Europe – Ryanair, began its operations in 1985 from Ireland. It was able to establish itself in the UK and it extended its wings to other parts of Europe. The company focused on price conscious travelers who travelled often to different parts of Europe for leisure and business. Scheduled airlines like British Airways, Lufthansa and Aer Lingus had to restructure their fare levels to compete with low cost airlines in Europe, and Ryanair in particular.

The number of low cost airlines halved during 2006, out of which only 15 had more than 50 flights per day. The low cost airlines also succumbed to stiff competition among themselves and some had to exit the market. Albeit challenging circumstances, Ryanair maintained sales growth of over 20 % between 2000 and 2005. It maintained lower fares even though fuel costs shot up and competition increased. With successful pricing and cost cutting strategies, it maintained a cost gap of 64% compared to other scheduled airlines. The case discusses strategies and operations of Ryanair to maintain high efficiency at lower costs.

Pedagogical Objectives:

  • To study low cost carrier industry in Europe
  • Ryanair’s cost cutting and branding strategies
  • Competition for Ryanair in Europe
  • Challenges faced by Ryanair to become a leading player in the airline industry.

Keywords : Ryanair; Low cost airlines in Europe; British Airways; EasyJet; short haul routes; point to point flights; Skylight system; Hertz Corporation; Buzz; Competitive Strategies Case Study; Secondary Airports and Third party contracts; Inviseo Table; On board Advertising; Turn around Time and Common Boeing fleet

Contents : 
Low cost Airline Industry in Europe
Ryanair’s Strategies
Low Cost Carriers in US, Europe and Asia-Pacific
Market Share in different states in Europe

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